KKR & Co Inc: Growth Investor Model Scores 69% on Fundamentals

KKR & Co Inc receives a 69% rating based on the Growth Investor model, highlighting positive EPS and revenue growth against some red flags in sales growth and earnings persistence. Time for informed investors to assess the implications.

Date: 18-04-2025

AI Rating: 6

Comprehensive Overview of KKR's Performance
KKR & Co Inc has garnered attention from the investment community, particularly due to its 69% rating from the Growth Investor model. This rating reflects underlying strength in certain areas while raising caution in others.

The report indicates significant positives such as a favorable P/E ratio and favorable earnings growth metrics for the current quarter, alongside an encouraging EPS growth for the current quarter that surpasses both the previous three quarters and the historical growth rate. These metrics are crucial for investors looking for sustainable growth, as they suggest that KKR is currently performing well on a quarterly basis.

However, it also presents red flags that potential investors should carefully consider. The company failed the sales growth rate and earnings growth persistence tests. This could be concerning as persistent or accelerating earnings and sales growth are vital for long-term investment attractiveness. Additionally, the long-term EPS growth rating is also marked as a failure, suggesting that while KKR shows short-term promise, its long-term growth trajectory could be far less certain.

From a **professional investor's perspective**, while KKR has proven resilient in certain aspects, its mixed performance on long-term metrics indicates potential volatility or challenges ahead. The investor must weigh the strong quarterly performance against the less favorable long-term indicators. In a market that highly values continuous growth, this information could lead to a cautious approach toward KKR's stock.

In conclusion, the combination of positive EPS growth and revenue growth indicates current excellence, but the failures in sales growth and earnings persistence may deter risk-averse investors. Depending on market conditions and investor sentiment, this complex picture can heavily influence KKR's stock prices in the near term.

Stocks: KKR